Supplier Spend Analysis

1
Supplier Spend Analysis

• Presented by
• DB Specialist Name, Title
• Purchasing Solutions
• October 2, 2001

2
Table of Contents

• Introduction Profiles
• Industry
• Geographic
• Supplier
• Concentration
• Risk
• Details
• Top 250 SICs, Ranked by Purchases Dollars
  Suppliers Numbers
• Top 250 Interrelated Firms, Ranked by Purchases
  Dollars Suppliers Numbers
• Top 250 Duplicate Suppliers, Ranked by Duplicates
  Numbers
• Top 250 Unmatched Suppliers, Ranked by Purchases
  Dollars

3
Introduction

• Number of records and purchases dollars by
  division.

4
Data Universe Review
Data Integrity Issue
Purchases
of Records
of Total
(000's)
of Total
Total Records Received
7,864


100
57,794
100.0
1
- Ineligible Records
1,697


21.6
3,825
6.6
Eligible Records for D-U-N-S Numbering
6,167


78.4
53,969
93.4
D-U-N-S Numbered Records ( of Total)
4,467


56.8
41,022
71.0
2
3
D-U-N-S Numbered Records ( of Eligible)
4,467


72.4
41,022
76.0
Non D-U-N-S Numbered Records
1,700


27.6
12,946
24.0
Records with D-U-N-S Number
4,467


41,022
- Duplicate D-U-N-S Numbers
3,065


0
4
Unique D-U-N-S
1,402


41,022
- Exclude D-U-N-S Numbers
0
0
5
Universe Used for Spend Analysis
1,402


41,022
Data Integrity Issue
See following page for definitions
5
Data Universe Review - Footnotes

• 1. Ineligible Records - Include unmatched
  records, with a Personal Name, Records with
  Insufficient Name and/or Address Information, and
  Non U.S. Records
• 2. D-U-N-S Numbered Records ( of Total) -
  Records with a D-U-N-S Number as a percentage of
  Total Records Received
• 3. D-U-N-S Numbered Records ( of Eligible) -
  Records with a D-U-N-S Number as a percentage of
  Eligible Records. These percentages are used to
  calculate Match Goals
• 4. Duplicate D-U-N-S Numbers - Multiple customer
  records that match to the same D-U-N-S number.
  Records beyond the first occurrence of a
  duplicate D-U-N-S are considered duplicate
• 5. Exclude D-U-N-S Numbers - Records exclude from
  the Spend Analysis, such as Inter-Company
  transfers, Tax Payments, etc.

6
Data Universe Review - Excluded D-U-N-S Numbers
Exclusion
D-U-N-S Numbers
Purchases (000s)
Customer Ultimate
5
7,466
Canadian Postal Service
0
0
Banks/Credit Unions
1
1
Finance/Taxation
0
0
Insurance
0
0
Holding Companies
0
0
Government
1
1
Province/States (Taxation)
0
0
Total
7
7,468
May be of interest to other departments such as
Finance or Real Estate
7
Pareto Analysis
Total Portfolio
Dollar Range
90 of suppliers have 10 of total spend
8
Industry Profiles

• Major Industry Group Segmentation
• of Total Spend
• Suppliers Numbers
• Purchases Dollars
• Industry Segmentation (4-Digit SIC Level)
• Top Industries (4-Digit SIC Level)
• of Total Spend
• Suppliers Numbers
• Purchases Dollars

9
Major Industry Groups - Ranked by Purchases -
Dollars
Total Portfolio
60 of purchases concentrated in top 3 industry
segments
Calculations Completed at Site Level
10
Manufacturing Industry Group - Top Manufacturing
SICs Ranked by Purchases - Dollars
Total Portfolio
SIC Code
Calculations Completed at Site Level
11
Services Industry Group - Top Services SICs -
Ranked by Purchases - Dollars
Total Portfolio
SIC Code
Calculations Completed at Site Level
12
Finance/Insurance Industry Group - Top
Finance/Insurance SICs - Ranked by Purchases -
Dollars
Total Portfolio
SIC Code
Calculations Completed at Site Level
13
Industry Segmentation - 4-digit SICs - Ranked by
Purchases - Dollars
of
Purchases
Total
Total
SIC
Industry
Suppliers
(000s)
Suppliers
Purchases
5111
Prtg Writing Ppr
22
2,851
0.31
6.95
6411
Insur Agts,Brks,Svs
26
2,839
0.37
6.92
2672
Coated,Laminate Ppr
22
2,554
0.31
6.23
6021
National Coml Banks
16
2,177
0.23
5.31
2621
Paper Mills
13
1,887
0.18
4.60
7513
Truck Rental Lsg
40
1,577
0.58
3.85
9311
Public Fin,Taxation
84
1,403
1.20
3.42
4813
Telephone Comm
74
1,403
1.05
3.42
4512
Scheduled Air Trans
26
1,330
0.36
3.24
3571
Electronic Computer
13
847
0.19
2.07
7373
Computer Sys Design
22
792
0.31
1.93
2752
Litho,Coml Printing
161
772
2.29
1.88
4213
Trucking
111
760
1.58
1.85
5031
Lumber, Plywood
18
615
0.26
1.50
Opportunity Negotiate better prices within
industry groups where biggest dollars are spent
2759
Coml Printing Nec
86
608
1.22
1.48
7363
Help Supply Svs
71
572
1.01
1.40
7331
Direct Mail Advg Sv
24
567
0.34
1.38
4215
Courier Svs Ex Air
53
542
0.76
1.32
6159
Misc Bus Credit Ins
16
528
0.22
1.29
5112
Stationery,Off Sups
105
522
1.50
1.27
Calculations Completed at Site Level
14
Top Industries Dollars - 4 Digit SICs, Ranked by
Purchase - Dollars
Price Leverage
Total Portfolio
SIC Code
Calculations Completed at Site Level
15
Industry Segmentation - 4-Digit SICs - Ranked by
Numbers of Suppliers
Opportunity Reduce number of suppliers and
related administration costs by consolidating
purchases
Calculations Completed at Site Level
16
Top Industries Dollars - Top 10 4-Digit SICs -
Ranked by Suppliers - Dollars
Consolidation Opportunities
Total Portfolio
SIC Code
Calculations Completed at Site Level
17
Geographic Profiles

• Country Segmentation
• of Total Spend
• Suppliers Numbers
• Purchases Dollars
• Province/State Segmentation
• of Total Spend
• Suppliers Numbers
• Purchases Dollars

18
Country Segmentation - Ranked by Purchase -
Dollars
of
Purchases
Total
Total
Country
Suppliers
(000s)
Suppliers
Purchases
England
53
333,549
14.17
35.18
Japan
67
89,515
17.91
9.44
United States
8
74,451
2.14
7.85
Canada
10
26,671
2.67
2.81
Mexico
2
12,237
0.53
1.29
Pakistan
1
11,166
0.27
1.18
Germany
4
8,199
1.07
0.86
France
4
6,886
1.07
0.73
India
2
5,913
0.53
0.62
Norway
8
5,380
2.14
0.57
Venezuela
7
3,125
1.87
0.33
Brazil
3
2,451
0.80
0.26
Costa Rica
6
1,781
1.60
0.19
Minimize exposure in high risk/tariff countries
Belgium
4
1,653
1.07
0.17
Philippines
2
1,151
0.53
0.12
Portugal
2
980
0.53
0.10
Spain
2
834
0.53
0.09
Scotland
4
747
1.07
0.08
Ireland
2
458
0.53
0.05
Finland
2
403
0.53
0.04
Calculations Completed at Site Level
19
Country Segmentation - Ranked by Suppliers Numbers
Calculations Completed at Site Level
20
Province/State Segmentation - Ranked by Purchases
- Dollars
Calculations Completed at Site Level
21
Province/State Segmentation - Ranked by Number of
Suppliers
Calculations Completed at Site Level
22
Supplier Profiles

• Top Individual Suppliers
• Purchases Dollars
• Top Interrelated Firms
• Suppliers Numbers
• Purchases Dollars
• of Total Purchases Dollars
• High Dependency Suppliers
• Purchases Dollars

23
Top Individual Suppliers - Ranked by Purchases -
Dollars
Calculations Completed at Site Level
Critical/High-Dollar Suppliers
24
Interrelated Firms Numbers - Aggregation
Opportunities - Ranked by Related Suppliers
Numbers
Calculations Completed at Global Ultimate Level
25
Interrelated Firms Dollars - Aggregation
Opportunities - Ranked by Purchases - Dollars
D-U-N-S
of
Purchases
Total
Rank
Number
Supplier
Related Suppliers
(000s)
Purchases
1
00-121-2901
CHAMPION INTERNATIONAL CORP
5
2,488
6.07
2
78-054-2882
B O K FINANCIAL CORPORATION
2
2,132
5.20
3
40-201-0177
KONINKLIJKE EMBALLAGE INDUSTRIE VAN LEER NV
2
1,872
4.57
4
20-230-7443
POWER CORPORATION OF CANADA
2
1,801
4.39
5
17-806-2048
CORPORATE EXPRESS INC
100
980
2.39
6
21-026-2341
SEDGWICK GROUP PLC
3
941
2.29
7
15-203-5432
MCI WORLDCOM INC
24
677
1.65
8
00-912-2532
HEWLETT-PACKARD COMPANY
11
658
1.61
9
87-930-1059
S D W HOLDINGS CORPORATION
2
538
1.31
10
00-131-6561
INTERNATIONAL PAPER COMPANY
11
431
1.05
Negotiation Opportunities
11
00-692-4872
DELTA AIR LINES INC
2
375
0.92
12
00-907-3099
BOISE CASCADE CORPORATION
6
361
0.88
13
06-978-3694
PENSKE CORPORATION
9
311
0.76
14
00-621-3482
U S BANCORP
4
304
0.74
15
06-119-3918
ASSOCIATES FIRST CAPITAL CORP
5
283
0.69
16
00-698-0080
ATT CORP
32
258
0.63
17
00-692-2827
RYDER SYSTEM INC
6
245
0.60
18
00-647-7061
BEMIS COMPANY INC
2
224
0.55
19
16-115-2996
KINKOS INC
5
221
0.54
20
79-819-0021
SALEM HOLDING COMPANY
2
206
0.50
Calculations Completed at Global Ultimate Level
26
High Dependency Suppliers - Ranked by Supplier
Dependency Ratio
Potential Fraud
Dependency Risk
Supplier Dependency Ratio Purchases / Sales
27
Risk Profiles

• Global Risk Segmentation
• Score Distribution by Country Risk Score
• Suppliers Numbers
• Purchases Dollars
• At Risk Suppliers
• Supplier Risk Segmentation
• Score Distribution by Stability/Financial Stress
  Score
• Suppliers - Numbers
• Purchases - Dollars
• At Risk Suppliers

28
Country Risk Segmentation
Identify Suppliers/Commodities In High Risk
Countries
Total Portfolio
Country Risk Score
Calculations Completed at Headquarter Level
29
Country Risk Segmentation - High Risk Countries -
Ranked by Number of Suppliers
Calculations Completed at Headquarter Level
30
Country Risk Segmentation - High Risk Countries -
Ranked by Purchases - Dollars
Calculations Completed at Headquarter Level
31
At Risk Suppliers - Using Country Risk Score -
Ranked by Purchases - Dollars
Calculations Completed at Site Level
32
Stability Risk Segmentation
10 of Suppliers and Purchases are Identified as
High Risk
Total Portfolio
Calculations Completed at Headquarter Level for
Canadian Companies
33
DB Stability Score - Using - Ranked by Purchases
- Dollars
D-U-N-S
Stability
Purchases
Total
Number
Supplier
Score
(000s)
Purchases
79-513-0533
MAXTOR CORPORATION (DELAWARE)
2
3,802
4.01
15-509-9310
PALO ALTO DESIGN GROUP INC
2.5
470
0.50
62-535-3925
NOVA MARKETING LTD
1.6
434
0.46
85-880-0477
STREAM INTERNATIONAL INC
3.0
124
0.13
78-834-0743
M C M S, INC
2.1
33
0.00
09-609-9007
MARWAY POWER SYSTEMS INC
1.9
2
0.00






























Calculations Completed at Headquarter Level










34
TOP 250 SICs - Ranked by Purchases - Dollars
35
TOP 250 Interrelated Firms - Ranked by Purchases
- Dollars
36
TOP 250 Duplicate Suppliers
37
TOP 250 Unmatched Suppliers